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What Is Asking Price In Real Estate? – Bankrate.com

Whichever side of a real estate transaction you’re on, there is a very important question that must be asked when a home is bought or sold: How much does it cost? The answer is determined by a number of factors, and it can change …….

Whichever side of a real estate transaction you’re on, there is a very important question that must be asked when a home is bought or sold: How much does it cost? The answer is determined by a number of factors, and it can change from when the home is put on the market to when the sale officially closes. But when a home is first listed for sale, there’s an initial dollar amount that the sellers ask for: the asking price.

What is asking price?

A home’s asking price is the amount of money that the seller wants a buyer to pay for it, at the moment they list it for sale. “This price is determined by the agent and the seller as a marketing price,” explains Benjamin Dixon, a New York City broker with the Mackay Dixon Team at Douglas Elliman.

Asking price is not necessarily the price the home will eventually sell for — that final amount could be higher, or lower. Think of it as a starting point, the number stamped on a property listing to inform potential buyers how much the seller is ideally looking for to make a deal.

Asking price vs. listing price vs. selling price

All three of these terms are often used when discussing the price of a home, but they are not always interchangeable.

  • The asking price is the price that a home seller places on the listing when they put it up for sale. It is dependent on a number of factors, but it is effectively the amount of money that the seller is asking a buyer to pay.
  • Some people use the term listing price, or list price, in place of asking price. These terms are, in fact, interchangeable. “The asking price is the same as the listing price,” says Dixon. “It refers to the same figure as the asking price and it is determined the exact same way. Listing price just means it’s the price that appears on a property listing.”
  • However, a home’s selling price, or sale price, is not the same thing. The selling price refers to the final amount the home actually sells for. The selling price is dependent on how much a buyer is ultimately willing to pay, and how much the seller is willing to accept. It can be higher or lower than the listing price, depending on repairs needed, buyer competition, local market conditions and a number of other factors.

How sellers decide on an asking price

The …….

Source: https://www.bankrate.com/real-estate/what-does-asking-price-mean/

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